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EXPLORING OUTSOURCING OPTIONS FOR TECHNICAL SERVICES IN
UNIVERSITY LIBRARIES: CASE OF UNIVERSITY OF NAIROBI LIBRARY
SYSTEM
JULIUS NYABUTI MUGOYA
A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF MASTER OF
LIBRARY AND INFORMATION SCIENCE, DEPARTMENT OF LIBRARY AND
INFORMATION SCIENCE, UNIVERSITY OF NAIROBI.
2014
DECLARATION
This research project is my original work and has not been submitted to any other
university.
Signature Date
Julius Nyabuti Mugoya
Registration Number: C54/60478/2013
This research project has been submitted for examination with our approval as the
university supervisors.
Signature Date
Dr. Elisha Makori
Department of Library and Information Science
Signature Date
Dr. Dorothy Njiraine
Department of Library and Information Science
ii
ACKNOWLEDGEMENTS
My special appreciation goes to my supervisors, Dr. Elisha Makori and Dr. Dorothy
Njiraine, for their invaluable advice, guidance and support. Their willingness to go the
extra mile and offer intellectual insights tremendously contributed to this project. I
would also like to thank the University of Nairobi for providing the opportunity to
study and in particular the library administration for facilitating and supporting the
fieldwork. To the respondents from the library system, please note that your time out
of your busy schedules and your well informed responses are highly appreciated. My
friends and colleagues, both at work and in class, are highly recognized for their
understanding and moral support during the course of this project. Without them, I
would have faced many insurmountable difficulties.
Finally I am forever indebted to my wife, Teresa, our children and all my family
members for their undying love, understanding, endless patience and encouragement
throughout the course of study. Many are the times when discouragement set in, but
with your prayers and dedication, I had to soldier on. Many are the times I have had
to stay away from all of you, but you understood and gave me the space. May God
reward you all.
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DEDICATION
To the Almighty God for having enabled me reach this far. He surely makes all things
possible at His own appointed time.
iv
LIST OF TABLES
Table 1. Distribution of Target Population. .................................................................... 25
Table 2. Justification for Outsourcing ............................................................................ 32
Table 3. Justification for Not Outsourcing .................................................................... 34
Table 4. Outsourcing Practices at UoN Library System.................................................. 35
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LIST OF FIGURES
Figure 1. Elements of Financial Assessment ................................................................. 19
Figure 2. Conceptual Framework ................................................................................. 21
Figure 3. Positions of Respondents ............................................................................... 30
Figure 4. Level of Awareness About Outsourcing ......................................................... 32
vi
ABSTRACT
The study assessed and evaluated the practices of outsourcing at University of
Nairobi’s library technical services section with the main objective of finding out the
outsourcing options available for such a library system. Considering that the
University of Nairobi is the first public university to be established in Kenya, the
study is aimed at exploring the outsourcing issue in a university library setting and at
the same time provide quantifiable data which could be used to formulate and uncover
useful research insights. Other objectives included finding out possible implications
of outsourcing in university libraries with reference to the University of Nairobi
library system, establishing the challenges facing libraries in relation to outsourcing of
technical services and giving suggestions on how to implement outsourcing practices
that could enhance the value of library services in the university environment. This
study used a case study research design involving both qualitative and quantitative.
Case study method was used to study the problem because of the small size of the
target population. The sample for the research comprised of the total membership of
staff from the technical department of the library, all the branch librarians, all the
deputy directors and the university library and information director. The study used
open-ended and closed questionnaires to collect data from the respondents. The data
collected from the research was analyzed against the objectives and the results
presented by the use of tables, charts, pie-charts, and narrative for documentary
information collected from both the secondary and primary sources. Quantitative data
was analyzed using descriptive statistics and prose discussions. The study findings
revealed that outsourcing is not practiced at the University of Nairobi library system.
There is need for the university library system to establish outsourcing as a means to
supplement existing services. The library system should strategically assess its
partners with a view of not only reaping the fruits of cost reduction but also benefiting
from cutting-edge technology available elsewhere. There is also need to have an
ousourcing policy in place, and re-engineer the acquisitions function in the light of
new technologies. Outsourcing should be re-defined in the whole university in order
to improve productivity.
vii
ABBREVIATIONS AND ACRONYMS
BPO Business Process Outsourcing
JKML Jomo Kenyatta Memorial Library
RBV Resource Based View theory
TCE Transaction Cost Economics theory
UoN University of Nairobi
viii
TABLE OF CONTENTS
DECLARATION................................................................................................................ i
ACKNOWLEDGEMENTS ............................................................................................. ii
DEDICATION.................................................................................................................. iii
LIST OF TABLES ........................................................................................................... iv
LIST OF FIGURES .......................................................................................................... v
ABSTRACT ...................................................................................................................... vi
ABBREVIATIONS AND ACRONYMS ....................................................................... vii
CHAPTER ONE ............................................................................................................... 1
INTRODUCTION............................................................................................................. 1
1.1 Introduction .............................................................................................................. 1 1.2 Background to the Study ....................................................................................... 1 1.2.1 University of Nairobi ............................................................................................ 5
1.3 Statement of the Problem ...................................................................................... 6 1.4 Aim of the Study ................................................................................................... 7
1.4.1 Specific Objectives of the Study ............................................................................ 7 1.5 Research Questions. .............................................................................................. 8 1.6 Significance of the Study ...................................................................................... 8
1.6.1 Theoretical Significance ........................................................................................ 8
1.6.2 Practical Significance ............................................................................................ 9 1.6.3 Policy Related Significance ................................................................................... 9
1.7 Assumptions of the Study ..................................................................................... 9 1.8 Scope and Limitations of the Study ....................................................................... 9 1.9 Operational Terms and Concepts ......................................................................... 10 1.10 Chapter Summary ............................................................................................... 10
CHAPTER TWO ............................................................................................................ 11
LITERATURE REVIEW ........................................................................................... 11 2.1 Introduction ........................................................................................................ 11 2.2 Fundamentals of Outsourcing .............................................................................. 11
2.3 Outsourcing and its Implications in Academic Libraries ...................................... 12
2.4 Overview of Outsourcing Practices in Academic Libraries .................................. 14
2.5 Negative Aspects of Outsourcing ........................................................................ 16 2.6 Theories of Outsourcing ...................................................................................... 18 2.7 Conceptual Framework ....................................................................................... 20 2.8 Chapter Summary ............................................................................................... 22
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CHAPTER THREE ........................................................................................................ 23
RESEARCH METHODOLOGY .................................................................................. 23
3.1 Introduction ........................................................................................................ 23
3.2 Research Design ................................................................................................. 23 3.3 Study Area .......................................................................................................... 24 3.4 Target Population ................................................................................................ 24
3.5 Sample and Sampling Techniques ....................................................................... 24 3.6 Data Collection Methods ..................................................................................... 26 3.6.1 Questionnaires .................................................................................................... 26 3.6.2 Document Analysis ............................................................................................. 26
3.7 Data Collection Procedures ................................................................................. 26 3.8 Research Highlights ............................................................................................ 27 3.8.1 Pilot Testing ........................................................................................................ 27 3.8.2 Validity ............................................................................................................... 27
3.8.3 Reliability ........................................................................................................... 28 3.8.4 Ethical Considerations ........................................................................................ 28 3.9 Data Analysis and Presentation ........................................................................... 28
3.10 Chapter Summary ............................................................................................... 29
CHAPTER FOUR ........................................................................................................... 30
DATA PRESENTATION, ANALYSIS AND DISCUSSION ..................................... 30
4.1 Introduction ........................................................................................................ 30
4.2 Respondent Profile .............................................................................................. 30 4.3 Sample Characteristics ........................................................................................ 31
4.4 Reasons for Outsourcing ..................................................................................... 32 4.5 Outsourcing Practices at UoN Library System..................................................... 35 4.6 Outsourcing Challenges at UoN Library System ................................................. 36
4.7 Chapter Summary ............................................................................................... 36
CHAPTER FIVE ............................................................................................................ 38
SUMMARY OF THE FINDINGS, CONCLUSION AND
RECOMMENDATIONS ................................................................................................ 38
5.1 Introduction ........................................................................................................ 38
5.2 Summary of the Findings .................................................................................... 39
5.2.1 Outsourcing Practices ......................................................................................... 39 5.2.2 Implications of Outsourcing ................................................................................ 39
5.2.3 Challenges Facing Outsourcing Practices ............................................................ 40 5.2.4 Solutions to Challenges Facing Outsourcing Practices ......................................... 40 5.3 Conclusion .......................................................................................................... 41 5.4 Recommendations ............................................................................................... 43
5.4.1 Need for Outsourcing .......................................................................................... 43
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5.4.2 Strategic Partnering ............................................................................................. 43
5.4.3 Outsourcing Policy.............................................................................................. 44 5.4.4 Acquisitions in the New Dispensation ................................................................. 44 5.5 Suggestions for Further Research ........................................................................ 45 5.5.1 Use of Social Media and Other New Platforms ................................................... 45 5.5.2 Investigate other Behavioral Aspects ................................................................... 45
5.5.3 Development of Central Acquisitions and Processing System in Kenya .............. 45 5.6 Chapter Summary ............................................................................................... 46
REFERENCES .............................................................................................................. 47
APPENDIX 1 ............................................................................................................... 51
Introduction Letter ......................................................................................................... 51
APPENDIX 2 ............................................................................................................... 52
Questionnaire for Data Collection .................................................................................. 52
1
CHAPTER ONE
INTRODUCTION
1.1 Introduction
This chapter presents the introduction and background information to the study on
outsourcing options for technical services in university libraries : case of University of
Nairobi library system. The chapter describes the study problem and motivation for the
study and its aim and objectives, research questions, assumptions, scope and limitations.
The significance of the study and how it contributes to existing research and policy and
decision making in this area is also discussed here.
1.2 Background to the Study
Outsourcing is a business practice that has been around for a long time even though in
different guises. This is the new practice for contracting out services in organizations.
In the Western world, the practice evolved from the industrial revolution whereby a
network of complimentary interrelationships existed between big industries and
smaller enterprises for the manufacture of parts and components or for certain
processing and finishing operations (Manning, Massini & Lewin, 2008). Since the
1990s, outsourcing has been transformed from a simple task to an innovative
management strategy. Scholarly and trade literature are now littered with strategic
outsourcing decision making strategies (Nyamamba, 2007).
Studies indicate that libraries and information systems have now followed suit and it
is common to find services like janitorial and photocopying being offered by outside
vendors. Around 1901, the Library of Congress started mass-production of catalogue
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cards and provided them to other libraries, in the process perhaps becoming the first
vendor of cataloguing services. Over the years, libraries have contracted out not only
cataloging services, but other functions such as labeling or fitting of plastic jackets as
well as the development of automated systems and the acquisition of materials. These
practices were not generally labeled as outsourcing when first adopted but it is only in
the context of recent developments that this term has been applied. Unlike in the
traditional outsourcing model where the service provider only performed well-
controlled activities, the current outsourcing has gradually changed since the
providers have significant capabilities and a higher level of knowledge than the
outsourcers. Indeed, it is now observed that outsourcing has evolved and been
transformed into problem solving outsourcing based on long-term cooperation
between the two partners. In addition the practice enables the exploitation of tacit
knowledge that would otherwise be costly and almost impossible to replicate within
the seeker of services (Sirec, Rebernik & Hojnik, 2012).
Study findings in Australia reveal that outsourcing provides opportunities to re-
distribute staff more efficiently and effectively across more value adding activities as
opposed to back office processes (Macroplan Australia, 2010). This meant that the
reduction of back office activities afforded staff opportunity to offer services in other
areas. The study concluded that outsourcing generated a range of benefit multipliers
such as having productivity/cost effectiveness gains since there was increased output
for the same or reduced inputs, social/user benefits (reallocation of resources leading
to value addition and increased user benefits) and floor space productivity benefits
(since less space is needed for cataloging and backhouse activities and the extra space
released for other events, new books and non-book stock). In the United Kingdom for
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instance, a number of legal firms have completely outsourced in-house libraries to
external, commercial service providers since 2009 (Lickley, 2014). The firms
outsourced because they appeared to value library services and wanted best value-for-
money. The firms outsourced not to obtain cheaper version of existing service, but to
gain more services for existing budgets.
Proponents of outsourcing of library services often say that doing so actually has
positive effects not only to the library but also information workers and especially the
community of users. The often reiterated advantage to outsourcing is that the practice
frees up time for the employees to focus on core information services of librarianship
like customer service. According to Hoffert (2007), library systems that outsource
book selection are able to allow librarians to focus on collection analysis. Similarly,
the librarians selecting become “liaisons” who review vendor lists and construct
detailed analyses and distribute materials to the branches. In addition, the librarians
have time to collect turnover reports to find out what is circulating most and weed
appropriately. Outsourcing also compels management to develop new competencies
and decision-making processes. Now they are forced to manage relationships instead
of internal functions and processes. Management also has to make decisions on
activities to be outsourced and the extent to which they should be outsourced.
Document review analysis points out that outsourcing in libraries and information
centres is rather a controversial subject. In business organizations, functions that are
not directly related to the organization’s perceived core values are mostly outsourced,
while core competencies or functions are kept in-house. Libraries operate in
constantly changing environment. Library functions, information services,
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organization of knowledge and resources are all subject to the paradigm shift. In such
environment it is not easy to point out what constitutes core or non-core competency
or function.
It is possible to outsource services without sacrificing either service or control.
Outsourcing should be considered only if there appears to be no other options,
suitable outside management can be found, and precautions are taken to keep the
library under the control of the management. For the purposes of this study,
outsourcing of library technical services refers to the outsourcing of acquisitions,
cataloguing and processing of information collections and resources. If a function can
be outsourced with no detrimental impact on library services while at the same time
saving valuable time and money, then outsourcing is a viable option for that function.
Outsourcing of cataloging functions in some selected situations is an effective tool for
managing technical services operation in libraries.
Normally selection of materials is done by the library and information staff but the
actual acquisition can be outsourced to some other entities that are well-versed in the
book trade world. This is even more relevant in the face of the Procurement Act in
Kenya, which requires that all purchases of materials including information materials
in public offices undergo the procurement procedures, in which at least three
quotations of each item from three suppliers have to be received. This requirement
makes procurement in the library, like in any other public entity, end up being tedious
and time consuming. This red tape can be gotten rid of if the entity to do acquisitions
had been procured earlier and all the contractual terms set.
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1.2.1 University of Nairobi
The University of Nairobi (UoN) was set up by an Act of Parliament in 1970 although
it started off as the Royal Technical College of East Africa in 1952. It was
promulgated into the university status in 1972 (Laws of Kenya, 2012). The university
received a charter in 2013. The mission of the University is “to provide quality
university education and training and to embody the aspirations of the Kenyan people
and the global community through creation, preservation, integration, transmission
and utilization of knowledge.” (UoN 2008).
The UoN has experienced rapid development and growth in terms of student intake
and expanded academic programmes. This has necessitated the formation of
constituent colleges across the country. From the onset, the library has been part of
the growth of the university. At present, the University of Nairobi library system is
composed of the main library, Jomo Kenyatta Memorial Library (JKML), and
fourteen branch libraries. All these have the core mission of providing contemporary
information services that empowers the university in carrying out core activities of
teaching, learning, research and community services and consultancy (UoN Library
System brochure, 2012). Furthermore, UoN has developed a five-year Strategic Plan
2008-2013 with the aim of revamping university programmes and making the
institution world class.
One of the areas which the strategic plan looks at is library services (UoN, 2008). The
library is a nexus of information professionals dedicated to advancing the mission of
the university. To successfully meet this, the library has spearheaded the teaching of
library and information science courses at the university. In order to stay focused on
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the university’s mission in the face of dwindling resources, there is need for library
management system to explore outsourcing options for information services. There is
need to take up the benefits of the specialized services offered by vendors and other
entities to reduce expenses involved in such tasks. According to the University of
Nairobi Library Services Strategic Plan of 2005-2010, provision of current, timely
and quality information in the face of the university’s rapid growth is a major
challenge given the rising cost of information resources. The government has been
facing constraints in funding universities (Cheboi, 2004).
1.3 Statement of the Problem
There has been tremendous growth in higher education in Kenya with universities and
tertiary colleges having grown exponentially. This has led to competition for the
scarce resources available, with the worst being the tightening of budgets which has
also affected the university libraries. The result is that the role of assisting the parent
institutions towards achieving teaching, educational and research goals is
inadvertently impacted upon. Organizations are looking at different ways of reducing
costs and risks and at the same time increase the quality of services. Universities also
need to have effective business models which should be implemented well otherwise
they will be disruptive. Outsourcing is now the standard business strategy widely
practiced in organizations due to its perceived benefits.
Library services in academic organizations can also take advantage of this strategy to
forge ahead. The study aims to find out if outsourcing is being practiced in the
University of Nairobi library system, and if not, suggest ways and means of achieving
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efficiency and quality services through the practice. The University of Nairobi library
system was chosen for the study owing to the fact that it is the oldest public university
in Kenya and therefore assumed to be representative of all the public universities in
Kenya. It is also located in the country’s capital where the majority of service
providers and vendors are also based. Perhaps if outsourcing turns out positively for
the University of Nairobi, then the other universities might be able to emulate those
positive distinctive features of outsourcing practices.
1.4 Aim of the Study
The aim of this study was to explore the outsourcing options for technical information
processing services at the University of Nairobi library system, and if not available,
suggest appropriate ways for incorporating the practice in mainstream operations.
1.4.1 Objectives of the Study
The study’s objectives were to:
1. Examine the outsourcing practices available for technical information
services at the University of Nairobi library system.
2. Explore possible implications of outsourcing in university libraries with
reference to the University of Nairobi library system.
3. Establish challenges facing the University of Nairobi library system in
relation to outsourcing of technical services.
4. Suggest on how to implement outsourcing practices that could enhance the
value of library services in the University of Nairobi library system
environment.
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1.5 Research Questions
This study examined the following questions:
1. What outsourcing practices are available for technical information services at
the University of Nairobi library system.
2. What factors influence decision making in relation to outsourcing in a library
system such as the UoN library system?
3. What is the role of the current human resources in UoN library system in the
outsourcing decisions?
4. Is the UoN library system focused more on outsourcing or performing the
tasks in-house?
5. What is the likely impact of outsourcing on the performance of core activities
of UoN library system?
6. What strategies can be put in place to minimize outsourcing challenges at the
UoN library system?
7. What are the recommendations to the UoN library system administration
which will enhance services through the use of outsourcing?
1.6 Significance of the Study
1.6.1 Theoretical Significance
Reviewing literature on outsourcing, there is hardly any mention of outsourcing
practices of technical services in Kenyan university libraries. This study attempted to
focus on this concept and open up discussions about the practice in the face of
shrinking budgets and changing user needs. The results, conclusions and
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recommendations from the study could be used by other researchers as a basis for
further research in the area.
1.6.2 Practical Significance
This study would assist the UoN library system to consider outsourcing some of their
technical services so as to enable the provision of timely information to its users.
1.6.3 Policy Related Significance
The outcome of the study would enable UoN and other academic libraries in Kenya to
come up with strategies for setting up systems that will incorporate outsourcing in
their operations.
1.7 Assumptions of the Study
1. The study assumed that UoN library system required to outsource some of the
technical services.
2. The study also assumed that there was no outsourcing policy or system in
place at the UoN library system.
1.8 Scope and Limitations of the Study
The scope of the study covered only the University of Nairobi library system. This
system comprises of the main library (Jomo Kenyatta Memorial Library) and fourteen
branch libraries. In addition, the study involved only the library administrators,
supervisors and staff from the technical sections but it excluded the functional areas
like accounting and human resource management.
The diverse geographical distribution of the university’s library branches posed a
challenge in data collection. However, the researcher took advantage of information
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communication technologies to communicate with far off branches through the use of
e-mail.
1.9 Operational Terms and Concepts
Outsourcing
This term is used within the context of contracting out to an outside vendor,
organization or individual to perform certain tasks and functions for the organization.
These are tasks and functions which could as well have been performed in-house.
The output of that function is then reintegrated into the organizational processes.
Technical Services
Technical services in the library world are seen as the sum total of acquisitions,
bibliographic control and automation of libraries. In some establishments, technical
services are divided into distinct departments such as cataloging, acquisitions, binding
and serials. For the purposes of this study however, technical services implies all
those activities including selection, acquisition, cataloging and classification and as
undertaken at UoN.
1.10 Chapter Summary
The purpose of this chapter was to give the background, problem statement, purpose
and value of the study. The general and specific objectives were listed and the scope
discussed. The following chapter provides background and history of outsourcing
through literature review. Various themes and sub-themes are discussed based on the
objectives and research questions formulated in chapter one.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
Chapter one provided the background of the study together with an outline of the
problem statement and the scope of the study. The objective of the study was given
and key terms used in the study were defined as well as the research methodology
briefly discussed. This chapter provides systematic review of literature on
outsourcing and serves as the basis for information in other chapters. The review is
based on specific research questions of the study highlighting various issues of
outsourcing.
2.2 Fundamentals of Outsourcing
The use of outsourcing in its various guises has been in existence within the business
world for a long time. It originated from the services industry and has spread to
different categories of business (Cyber Futuristics, 2007) and now it is a strategic
initiative. To save costs, organizations started by outsourcing functions they perceived
to be non-core in their business, mainly to improve the financial status of functions.
This has since evolved and areas which were core, like customer service, are also
being outsourced (Handfield, 2006). Another area which has come up within
outsourcing is the business process outsourcing (BPO). This is where total processes
such as the human resources or payroll functions are managed by a service provider.
BPO, however, is not within the scope of this research.
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Primarily, outsourcing consists of three components; the project, the client and the
vendor. The three components are interrelated and there is interdependence between
them. The client is the organization or entity that would like to outsource a project
while the vendor is the party that will take over the project and do the work. The
project is the work, functions or services to be outsourced (Power, Desouza &
Bonifazi, 2006:3-4). Outsourcing of functions or services does not mean that the
client is free from being accountable. Accountability for the effective working of the
outsourced environment remains with the client.
2.3 Outsourcing and its Implications in Academic Libraries
Outsourcing is the business strategy in which the third party is contracted to perform
non-core activities for the organization. Outsourcing may lead to reduction of
operational costs and achievement of efficiency. The practice may also lead to gaining
world-class capabilities, creating rich environment of resources that might have been
insufficient internally and sharing risks with partner organizations. This resonates
well with the strategic plan of UoN which aims at making it a world class university.
In a study done in 2011, it was generally indicated that outsourcing has had a positive
effect on the overall economy of the United States of America (Mukherjee, 2012). At
present, there is room for cloud sourcing of innovation in the academic library world.
This is basically the outsourcing of digital information services. Social networking
and computing has given rise to the phenomenon where people help each other and
now traditional roles like those of reference librarian are slowly disappearing. Library
users have changed at rapid speed than the librarians.
Due to the shift in technology, budgets and user expectations, academic libraries have
to change with the times. Library and information establishments have to adopt a
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business-like approach in information management practices (Makori, 2009:10). One
of the most urgent features in library management is the provision of access to
information. This is despite the fact that there is an avalanche of information
resources now more than ever before in human history. Timely provision of
information is hampered if the technical processing of the resources is not done on
time. In most libraries there is the imbalance between acquisitions and processing,
thereby creating a backlog. The need to catalogue and process backlogs is therefore
crucial (Asaolu & Idiegbeyan-Ose, 2014). In addition, as observed by Ibrahim and
Kofi (2012), the fact that cataloguers are also given other responsibilities in academic
libraries leads to the backlog problem. In such a scenario, outsourcing the cataloging
function would be ideal.
The Institute of Chartered Accountants in Australia (2011) gives additional reasons as
to why organizations outsource in general. The practice enables organizations to have
access to leading-edge technology without capital investment and to transfer risk to
the service provider. Service providers are easier to remove or replace as opposed to
employees. The practice also enables firms to have delivery of continuous
improvements in process effectiveness and efficiency. Outsiders can add fresh
perspective to internal processes. This leads to improvement opportunities not seen
from inside and better, faster and cheaper way of performing the tasks at hand. There
is also leverage of scarce resources although using outsiders calls for due diligence
and proper management. There are a number of issues which crop up such as
objectives and scope of work to be done should be looked at carefully, access issues
need to be tackled, procedures of handling the work need to be employed, and
confidentiality issues should be sorted out.
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2.4 Overview of Outsourcing Practices in Academic Libraries
In the United States of America, outsourcing in libraries became a prevalent topic in
the 1990s. Initially, outsourced services were limited to narrow and auxiliary services
like library security, binding, photocopying and janitorial services. These have
expanded into more complex and extensive operations such as preservation,
cataloguing, retrospective conversion, digitization and reference services among
others. For instance, the cataloguing function of the Wright State Universities has
been outsourced since 1993 upto the present in an effort to increase quality of the
services and decrease the costs of book cataloguing (Hayeka, 2014). Outsourcing
saved the libraries of that system 63% of recent costs for cataloguing with no job loss
and the entire backlog has been eliminated. With less money spent, the quality and
quantity of the library materials significantly increased. Florida college libraries chose
outsourcing functions that suited individual situations (CCLA Technical Services
Standing Committee, 2008-9).
In Australia, outsourcing of some services such as cataloging is being practiced even
though no firm offers comprehensive outsourced library and information services.
The scenario is expected to change rapidly to comprehensive outsourcing (Australian
Library and Information Association, 2014). Traditionally, outsourcing has been
performed for non core activities. Times have changed and now outsourcing of core
corporate activities is taking place (Manning, Massini and Lewin, 2008). In Victoria,
a group of universities purchase their books collaboratively as the Academic and
Research Libraries Acquisition Consortium.
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Indian libraries have been outsourcing some of the functions for some time now
(Limbachiya, 2008). Depending on the need, outsourcing of such services as
cataloging, classification, preservation, shelving, photocopying, binding, translation,
bar coding, members’ identity cards, indexing, database management,
computerization and purchase of products or services is done. Limbachiya (2008) is
of the opinion that outsourcing has the potential of lowering overall costs and
improving the quality of library services and products. Reasons identified by the
Indian libraries for embracing outsourcing include staff are left to concentrate on core
activities, there is reduction of operating and training costs, provision of best quality
services is guaranteed and customer satisfaction is ensured among others. Outsourcing
also opens up new jobs for the upcoming library professionals. These new
professionals can now form commercial information and library processing firms to
offer such services.
In China, the situation is not any different. There is marked focus on outsourcing of
acquisitions and cataloging in university libraries which began to be employed from
the 1990s (Qiu & Xiao, 2008:129). The reasons for doing so are similar to those given
by Limbachiya in the Indian libraries’ case. In addition, the librarians point out that by
practicing outsourcing, libraries are encouraged to renovate the operational processes
and conduct re-composition or re-engineering of information processing systems. In
Japan, 90% of academic libraries outsourced services in one form or the other (Sato &
Itsumura, 2008). Services ranging from binding to cataloging and reference services
are outsourced.
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In Africa, Nigerian university libraries have not been left behind either (Ugah, 2010).
The economic situation in the country has made libraries to consider outsourcing in
order to cut down costs, improve efficiency and meet the demands of accountability
and user satisfaction. Those who have outsourced services are positive about the
experience The services outsourced include photocopying, indexing and abstracting
services, collection development services, and binding and book repair (Okogwu,
2013:24).
In Kenya, a number of studies have been done involving outsourcing and the
university libraries (Mwai, 2011; Mwai, Kiplang’at, & Gichoya, 2014). However,
they are all leaning towards the outsourcing of information communication
technology services. There are also other studies looking at outsourcing of non-core
services at the Kenyan universities (Biebei, 2008). The non-core services such as
photocopying, security and janitorial work have been outsourced. Indeed there are a
number of studies touching on outsourcing and BPO issues in business enterprises and
organizations but there is no documented study on outsourcing of technical
information services in the university libraries in Kenya.
2.5 Negative Aspects of Outsourcing
Outsourcing has also attracted a number of criticisms leveled against it. The chief
among these is that it would cause job loss (Alcock, 2012). Indeed it is a difficult
claim to assess in the absence of statistics but nevertheless, that is what comes to the
fore in the libraries where the outsourcing idea has been floated. There is also the risk
of easily getting hooked on dependable service providers as it is human nature to stick
to what works. In addition, the in-house staff from the organization doing outsourcing
may resent the whole arrangement. This would be the result of not having clear
17
communication within the organization. The end result would be an exercise in
futility which ends up costing more instead of reducing the expenses. Corporate
cultures are unique in the sense that each has its own vision, mission and values and
with a unique way of communication. These unique features offer the challenge to
newly engaged outsourcing partners who are likely to take time to understand the
system (Kvedaraviciene and Boguslauskas, 2010).
The client doing the outsourcing may also lack the necessary expertise in negotiating
a good contract. This could lead to higher costs and loss of control since the service
provider can provide services as per the contract but not to the expected level. The
outsourcing contract needs to be specific and fully encompassing with exclusions and
inclusions expressed in clear terms. The client who outsources the functions still has
to effectively manage those functions in order to get quality services and ensure a
successful relationship with the supplier. All aspects of the contract should be well
thought out and expressly stated otherwise the cost of outsourcing could be higher
than the benefits. The loss of control can subsequently lower job satisfaction, higher
stress and greater absence and turnover with the staff (Huws, 2012:14).
A study conducted by Jeffreys (2012) noted that outsourcing could also compromise
the quality of service since the commitment which staff had of providing high quality
services is diminished. For instance, outsourcing cataloguing diminishes tacit
knowledge based in that library. Similarly outsourcing of information systems also
poses a threat to data protection, integrity and a host of other security problems.
Deloittes did a survey in 2005 of organizations doing outsourcing and the risks they
cited included vendor under-performance, loss of control, cost-related problems,
18
knowledge and confidentiality loss, and hidden costs among others. Subsequently one
in four organizations brought back their services in-house (Deloittes, 2005).
Generally, proponents of outsourcing support it from an economic viewpoint while
the opponents look at the social consequences of outsourcing. Despite the various
views, outsourcing is a feature which cannot be ignored. The practice is already
within the library and information industry in various guises. For a while, library and
information services were assumed to be non-tangible and therefore could not be
contracted out like catering or facilities management. This is no longer the case as
library services can be quantified and commodified as any other non income
generating activity within the organization.
2.6 Theories of Outsourcing
There are several theories explaining the concept of outsourcing and related
processes. They include theory of transaction cost economics, relational view,
resource based view, knowledge based view, agency theory, social exchange theory
and theory of economics of information among others (Perunovic & Pederson, 2007).
This study draws from the two most widely used theories in outsourcing literature; the
transaction cost economics (TCE) theory and resource based view (RBV) theory. The
TCE theory developed by Ronald Coarse states that firms are organized to cut down
on transaction costs. TCE is perceived to provide the best decision making tools to aid
organizations in outsourcing. The theory explains why some activities are retained by
organizations while others are outsourced. The theory identifies two types of costs,
production and transactions costs. Outsourcing has the potential of increasing
19
transaction costs of the activity even though it reduces production costs (Rugman &
Verbeke, 2007). As a result, the transaction costs fundamentally influence whatever
decision is made as far as outsourcing is concerned. Actually the primary motivation
to outsource is to save money.
To do so, then a financial assessment should be undertaken to determine the true cost
of processes and services. The current versus the future costs have a major influence
on the decision of either going for or against outsourcing. Technical processing of
information in libraries is a specialized area that requires investment in resources and
skill development. Outsourcing of this area often overlooks the indirect costs that are
associated with the function. If a decision is made to outsource, then the aim is to
reduce those transaction costs as much as possible, and that can be done by working
collaboratively with other institutions which require similar products or services so
that the work of setting up and monitoring the contract is shared. This will allow the
finding out of which areas will provide a cost saving through outsourcing. Power et al.
(2006) describe these costs through the following figure:
Figure 1. Elements of Financial Assessment (Source: Power et al., 2006:58)
Financial
Assessment
Direct vs.
Indirect costs
Current costs vs.
Future costs
Types of
costing method
20
The RBV theory looks at the organization as a collection of resources and therefore
resources should guide the organization’s strategies. The relationship between
sourcing strategy and the external environment determines the boundaries of the firm
(Rodriguez & Robaina, 2006). This theory implies that organizations can turn to
outsourcing and still stick to the mission and vision. Outsourcing of cataloguing is
easier to rationalize using RBV as this emphasizes that cost-effective solutions are
required in order to fulfill the mission and vision. The human resources are the
biggest asset in any organization. This is the resource that guides outsourcing and its
outcome, if at all it is to happen in an organization. Research indicates that if
outsourcing is not managed carefully, there are risks of negative performance by staff
due to low morale and high turnover (McAulay, Doherty & Keval, 2002:246-249).
The environment of the organization is important. Therefore this theory also
rationalizes the use of collaborative strategies to gain access to critical resources, to
stabilize relationships with providers and to secure survival. The two theories look
like they oppose each other though both are looking at the question of resources.
Outsourcing depends on resources required and costs involved although effective
monitoring and contract management are costly. Contractual hazards increase
transaction costs and decrease the efficiency yearned for.
2.7 Conceptual Framework
The key concepts involved in the study include independent variable (outsourcing
decision) and dependent variables (such as cost effectiveness, user benefits, value
enhancement, etc). There are also other intervening variables (such as policy issues,
21
regulatory environment, stakeholders, management expertise, etc) which affect the
outcome. This conceptual framework is illustrated in the figure below:
Dependent variables Independent variable
Intervening variables
Figure 2. Conceptual Framework (Source: Researcher, 2014)
Change in the independent variable has far reaching effect on the dependent one. In
particular, if in-house production costs are higher than when outsourced, then
outsourcing will be looked at favourably. The reverse also applies. Outsourcing
arrangements need to be well managed under proper policy and regulation
frameworks and with the consent of the stakeholders. Outsourcing requires a clear
understanding of the organizational strategy. Clear process frameworks and effective
managerial expertise are critical in the success of outsourcing.
Productivity/cost
effectiveness
Floor space
productivity benefits
Social/user benefits
Policy issues
Regulation
Stakeholders
Managerial expertise
Outsourcing of technical
information processing
services
22
2.8 Chapter Summary
Literature reviewed indicates that outsourcing of the library services and processes
provides opportunities as well as challenges. The outsourcing environment is complex
and if not undertaken carefully, it can lead to costly mistakes. It can also produce
worthwhile savings and improve the quality of activities and services when
successful. It is important for the prospective outsourcer to fully understand the
requirements of the environment or service to be outsourced in order to make a
correct assessment. The following chapter will discuss the overall approach used in
the study, the study design, study area and target population. The chapter also
discusses the sampling procedures, methods and instruments of data collection.
23
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
In the previous chapter, a literature review was conducted to explore the outsourcing
phenomenon. The focus of this chapter is on the details of the research process and
the tools used for this study. This chapter specifically looks at research design, area
under study, target population, sample size and sampling techniques, data collection
methods, research instruments, procedures to be used in data analysis and ethical
considerations among other aspects.
3.2 Research Design
This is the plan and structure of study as formulated by the researcher so as to obtain
answers to research questions. The research design also seeks to provide confidence
that the findings derived from the study captures reality and possess high levels of
reliability and validity. The case study approach is used in the study. Yin defines the
case study research method as an empirical inquiry that investigates a contemporary
phenomenon within its real-life context; when the boundaries between phenomenon
and context are not clearly evident; and in which multiple sources of evidence are
used (Yin, 2009:23). The case study approach seeks to understand the problem being
investigated though it may be limited by a number of events or conditions and their
relationships. It is a useful approach when not much is known about a phenomenon.
It provides the opportunity to ask penetrating questions and to capture the richness of
organizational behavior, but the conclusions drawn may be specific to the particular
organizations studied and may not be generalized.
24
This study is based on a mix of quantitative and qualitative data. The quantitative
approach was used to quantify incidences in order to describe current conditions. The
qualitative approach was used to explain the events and describe findings using
interviews and documentary analysis. All this enabled the researcher to gain in-depth
information that will be used to find solutions for the research questions of the study.
Moreover, the study is exploratory to some extent since there are no previous studies
on outsourcing of technical information processing services in Kenya.
3.3 Study Area
The unit of research was the University of Nairobi Library System that is composed
of the main library, The Jomo Kenyatta Memorial Library, and fourteen branch
libraries.
3.4 Target Population
Brynard and Hanekom (2005:43) explain that the term population in research
methodology refers to the objects, subjects, phenomena, cases, events or activities
specified for the purpose of sampling. The target population of this study comprised
of the Director of Library and Information Services, the three Deputy Directors, the
fourteen branch librarians, heads of cataloging, acquisitions and preservation/bindery
departments and staff from those departments. This population was chosen because it
represents the typical structure found in university libraries in Kenya. It provides a
causal relationship across the larger population.
3.5 Sample and Sampling Techniques
The sample for the research comprised of the total membership of staff from technical
department of the library, the branch librarians, all the Deputy Directors and the
25
Director of Library and Information Services. Purposive sampling is used in this study
so as to focus on particular characteristics of a population that are of interest. The
primary consideration in purposive sampling is to draw on who can provide the best
information to achieve the objectives of the study (Kumar, 2005:179). This method
was ideal for the study because of the small size of the target population and therefore
this enabled the study to get an in-depth information rather than generalized broad
understanding of the research questions. Questionnaires were administered to all staff
in the targeted sections. In general the sample size involved in the study is as shown
in the table below:
Table 1. Distribution of Target Population
RANK
TARGETED
NUMBER
Director, Library and Information Services 1
Deputy Directors 3
Branch Librarians 14
Head of Cataloguing section 1
Head of Acquisitions section 1
Head of Preservation/Bindery section 1
Cataloguing staff 5
Acquisitions staff 4
Total 30
(Source: Researcher’s own tabulation using UoN sources)
26
3.6 Data Collection Methods
The study used questionnaires and interviews to collect data from the respondents.
Some of the data was collected through documentary evidence that gather relevant
information to the study.
3.6.1 Questionnaires
A questionnaire is a widely used data-gathering technique which can be used to
measure issues such as behaviour, attitudes, beliefs, opinions, characteristics and
expectations among others (Anderson 2004:208). Questionnaire are described as
written instruments that present respondents with series of questions or statements to
which the participants react either by writing out the answers or selecting from among
existing. Questionnaires were self administered to the respondents so as to collect
information relevant to the study. The questionnaires covered all the aspects of the
study variables.
3.6.2 Document Analysis
The study also reviewed existing information resources related to the study problem
and variables in order to gain information on the topic.
3.7 Data Collection Procedures
In this study, data was collected through self administered questionnaires. This
involved the process of distributing the questionnaires to the sample population while
the university was in session so as to ensure that maximum number of respondents
were accessed. The questionnaires were collected from the respondents personally
where possible, but research assistants were equally used to help in other
circumstances. The questionnaire collection procedure ensured high degree of
questionnaire response rate. The questionnaires also contained open-ended questions.
27
This was done to ensure that questions related to objectives of the study captured the
qualitative aspects of the study.
3.8 Research Highlights
Other measures taken during the course of the study are:
3.8.1 Pilot Testing
Pickard (2007:197) opines that pilot testing is an important part of purifying the
survey instrument. Pilot testing was conducted on two senior administrators from
African Nazarene University library. The intention was to seek their views on the
subject and ensure that the questions being addressed were appropriate to the study.
Through the pilot test, more development and refinement was done on the
questionnaire. This is the time when the length of the questionnaire was also
determined.
3.8.2 Validity
Validity is the degree to which an instrument measures that what it was intended to
measure (Kumar, 2005:153). The questions were based on information gathered
during literature review. In the study, the questionnaires were administered on a
small group of respondents who did not form part of the study to help validate the
information collected. Recommendations were made regarding instructions, content
and layout. Validity testing also provided a preview of the data collection before the
same was administered upon the actual respondents.
28
3.8.3 Reliability
The study involved experienced professionals in the information field, to ascertain
that the research instruments were appropriate for the collection of the required data
and improve on the instruments quality before administering the same to the
respondents. This helped ensure that reliable information was collected from the
respondents.
3.8.4 Ethical Considerations
Just like in any other human activity, ethical considerations and behaviour are also
important when undertaking research (Welman, Kruger & Mitchell, 2005:182). A
letter of introduction and authorization from the University was provided as a request
for permission to conduct the study. Prior to distributing the questionnaires, contact
was made with the respondents through electronic mail to make them aware of the
exercise. A covering letter accompanied the questionnaires explaining the purpose of
the study and the questionnaires were distributed directly to the respondents in their
respective areas for filling and collected later. The questionnaires used for data
collection were handled with confidentiality to ensure the information collected is
used only for the purposes of research.
3.9 Data Analysis and Presentation
The data collected from the research was analyzed against the objectives and the
results enumerated. The results are further presented by the use of tables, charts, pie-
charts, and narrative for documentary information collected from both the secondary
and primary sources. The data was interpreted against the objectives and other
research findings.
29
3.10 Chapter Summary
This chapter described the research methodology of the study, explained the sample
selection, described the procedures used in designing the instrument and collecting the
data, and provided an explanation of the statistical procedures used to analyze the
data. The study used a quantitative survey design with questionnaires which were
both closed and open-ended. The sample characteristics included people who are at
the top level of the university library system administration, branch librarians,
supervisors and staff from the technical information processing section of the library.
Permission was obtained from the university library administration as well as consent
from the respondents. Anonymity and confidentiality were ensued during
administration of the questionnaires and report writing. The following chapter is
going to deal with data presentation, analysis and discussion of the findings.
30
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION
4.1 Introduction
The previous chapter presented the research methodology of this study, while this
chapter presents the data analysis and interpretation of the results. The data collected
was processed using Microsoft Excel software and the results presented and
interpreted as guided by research objectives set out earlier in the study. The chapter
begins with data analysis and presentation and then focuses on discussion. The results
have been analyzed in relation to the research questions.
4.2 Respondent Profile
The population of the study comprised of the University library director, three deputy
directors, all the 14 branch librarians, supervisors and staff in acquisitions and
cataloging sections of the University of Nairobi library system. Figure 3 shows that all
areas were proportionately represented.
Figure 3. Positions of Respondents (Source: field data)
31
A total of 30 questionnaires were distributed but only 18 (60%) of the respondents
completed and returned the survey questionnaires. Two questionnaires were not
considered due to excessive missing of data. Nachmias and Nachmias (2004) have
pointed that survey researches face a challenge of low response rate that rarely goes
above 50%. They suggest that a response rate of 50% and above is satisfactory and
presents a good basis for data analysis. Gillham (2000:48) opines that if the response
rate is less than 30% then the value and validity of the research method and the
research methods themselves are in question. The response rate of this study having
surpassed that figure, it could therefore be termed as being satisfactory.
4.3. Sample Characteristics
The survey sought to know the length of years respondents had in the field of
technical processing of information. The purpose of the question was to determine
whether the respondents were familiar with the actual processing of information. All
of them (100%) indicated that they had more than 15 years of experience. This shows
that the workforce in the UoN library system is a very experienced one and has a lot
to offer to the profession of librarianship and information management. Along with
this, the survey also sought to know their level of awareness about the concept of
outsourcing. As the pie-chart (figure 4) below shows, everyone is aware of this
concept though at varying levels. It is interesting to note that those in the high ranks
of administration have a very high level of awareness which cascades downwards as
you come to the lower ranks. This calls for carrying out of sensitization and
awareness exercises incase this concept is to be undertaken.
32
Figure 4. Level of Awareness About Outsourcing (Source: field data)
4.4. Reasons for Outsourcing
Eleven statements justifying outsourcing were presented to respondents. They were
requested to respond to the statements using a five Likert scale ranging from very
important (5) to very unimportant (1). The findings are presented in the following
table 2 followed with an analysis and interpretation.
Table 2. Justification for Outsourcing
REASONS FOR OUTSOURCING 5 4 2 3 2 1
Cost savings - 75% 12% 13% -
Allow more focus on core business 13% 38% 38% 11% -
Improve service level 13% 63% 13% 11% -
Control budget 12% 50% 13% 25% -
Lack of internal expertise 43% 15% 27% 15% -
Acquire innovative ideas 14% 60% 13% 13% -
Free up human resources for other tasks 27% 27% 27% - 19%
Increase flexibility to meet changing environment 15% 41% 16% 28%
Save time 28% 16% 28% 16% 15%
To enhance standardization 28% 28% 16% 16% 15%
To enhance users’ satisfaction 14% 54% 15% 16% -
(Source: field data)
33
The above table shows that respondents don’t rank saving costs very highly even
though it is an important element. It can also be noticed that saving time through
outsourcing is received in a lukewarm manner. However the majority of the
respondents view outsourcing positively given the fact that all the eleven statements
have high scores when the “Very important” and “Important” considerations are put
together. Those who feel that the concept of outsourcing is very unimportant are few.
However as important as the concept is, the twist is that it is not a welcome idea.
When confronted with a situation where outsourcing has to take place, the study
sought to know the criteria that the respondents would then use to do it. The
respondents indicated that they will consider funds available for the exercise,
experience of the vendor, the likely impact of the outsourced services on the user
population, the kind of data security given by the service provider, service quality,
professionalism and standards of the vendor.
The following table 3 gives reasons why outsourcing is not a favourite option.
34
Table 3. Justification for Not Outsourcing
Why Outsourcing Should Not be Done 5 4 2 3 2 1
No significant cost savings 30% 38% 12% 20% -
Possible loss of confidentiality 62% - 20% 18% -
Loss of control 20% 30% 30% 20% -
In-house provides better quality 25% 75% - - -
Organization policy not to outsource 39% 45% 16% - -
Slow response time - 52% 19% 29% -
Sufficient in-house staff - 46% 18% 18% 18%
Highly skilled in-house staff 50% 50%
(Source: field data)
There is near unanimous agreement that the university has highly skilled staff who are
sufficient and are providing better quality services. However in this age of rapid
innovation, organizations cannot simply maintain their levels of skills and
competencies. There is increased competitiveness and so there is need to create
knowledge, and innovate processes and products. The “I can do it all by myself”
concept brings about stunted growth. Organizations have the onus of partnering with
outside entities or vendors to source ideas, know how and capabilities (Baloh et.al.,
2008). Outsourcing may not achieve the expected benefits if factors such as
formulating and quantifying requirements are not properly done. Lack of a formal
outsource decision-making process, mainly in the form of a policy is a major
challenge. Outsourcing needs to be anchored on a strong framework that will guide
the organization towards gaining from it. There is no outsourcing policy in the UoN
library system. The other theme which runs across the responses is that outsourcing
might lead to possible loss of confidentiality (62%). This means that when
35
outsourcing has to be undertaken, then it must be done cautiously with trustworthiness
of the vendor at the fore.
4.5. Outsourcing Practices at UoN Library System
The study also sought to find out the outsourcing practices currently at the UoN
library system. The following table 4 illustrates the scenario.
Table 4. Outsourcing Practices at UoN Library System
ACTIVITIES AND SERVICES
DONE
IN-HOUSE
ON CONTRACT/OUTSOURCED
FULLY PARTIALLY
Digitization 60% 40%
Assigning subject headings 100%
Serial subscription 100%
Electronic document supply 40% 60%
Cataloguing 100%
Physical processing 100%
Authority control 100%
Collection development/ Acquisitions 100%
Indexing/Abstracting services 60% 40%
Photocopying 100%
Binding 100%
Labelling 100%
Printing 80% 20%
(Source: field data)
The findings indicate that the following services are 100% done in-house; assigning
subject headings, serial subscription, cataloging, physical processing, authority
36
control, collection development/acquisitions, photocopying, binding, and labeling.
There are other services which are partially done in-house such as digitization (60%
in-house) and partially outsourced (40%), electronic document supply (40% in-house)
and part fully outsourced (60%), indexing and abstracting services (60% in-house)
and partially outsourced (40%); and printing which is largely in-house (80%) and part
fully outsourced (20%). The study found out that the library only initiates outsourcing
decisions but the outcome is determined at the highest levels of University
administration. Therefore it is not directly involved in making the final decision.
4.6 Outsourcing Challenges at UoN Library System
The biggest challenge at the UoN library system is that there is no outsourcing policy.
In fact, the acquisition policy is the one used to stand in for outsourcing. Respondents
(100%) also listed fear of job loss as among the top reasons why they will not accept
outsourcing. The study sought their opinions on what should be outsourced. The
listing came up with services such as; staff training, shelving, dusting, cleaning,
security, binding, automation services, photocopying, retrospective conversion of
data, indexing and abstracting, staff recruitment and backlog cataloging. Looked at
critically, these are the traditionally outsourced services. There is need to re-engineer
the current services and go beyond the normal. The university could as well become
the trendsetter by going into new areas not yet ventured into by others.
4.7 Chapter Summary
In this chapter, data gathered from the study has been presented and analyzed. The
findings are further discussed in relation to objectives of the study. The following
37
chapter gives a summary of the findings, conclusions drawn and gives
recommendations and suggestions for further research.
38
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Introduction
In the previous chapter, the results of the study were tabled and the findings
discussed. This chapter gives an overview of the findings, conclusions drawn from the
study and recommendations made thereof. Also possible avenues for future research
are mentioned. The chapter concludes with a summary of the value of this study.
The purpose of this study was to explore the outsourcing options for technical
information processing services at the UoN library system. The findings presented
here are based on the objectives of the study which were to:
1. Examine the outsourcing practices available for technical information services
at the University of Nairobi library system.
2. Explore possible implications of outsourcing in university libraries with
reference to the University of Nairobi library system.
3. Establish challenges facing the University of Nairobi library system in relation
to outsourcing of technical services.
4. Suggest on how to implement outsourcing practices that could enhance the
value of library services in the University of Nairobi library system
environment.
39
5.2 Summary of the Findings
This section provides the summary from the findings based on the objectives of the
study. The themes and subthemes resulting from the objectives addressed various
issues as discussed below. From the study the following were established:
5.2.1 Outsourcing Practices
The first objective of this study was to examine the outsourcing practices available for
technical information services at the University of Nairobi library system. In
establishing this, the study findings revealed information as indicated in Table 4, pg.
35 and through qualitative analysis. The findings clearly illustrate that the majority of
services and activities are done in-house while a small portion is partially done in-
house and partially outsourced. These are services such as such as digitization,
electronic document supply, indexing and abstracting services, and printing.
Interestingly, some of the services like photocopying have been totally outsourced by
other library systems elsewhere in the world but here they are still done in-house
while from the literature review, it is affirmed that organizations outsource services
which they deem to be non-core to their business. This scenario is a strong indication
that outsourcing has not been given much thought by the UoN library system.
5.2.2 Implications of Outsourcing
The second objective of the study was to explore possible implications of outsourcing
in university libraries with reference to the University of Nairobi library system. The
findings are partly revealed in Table 3, pg. 34 and others through qualitative analysis
of the responses. Findings reveal that all the respondents fear that outsourcing is
tantamount to them losing their jobs, hence they would prefer outsourcing of the
traditional non-core services. From the study and literature review, it is affirmed that
40
organizations outsource services which they deem to be non-core to their business
even though outsourcing has both long-term and short-term implications on the
organization. Over the years, librarians working in universities have benefited from
relatively good remuneration and career development opportunities. Therefore,
outsourcing cannot be kindly taken as it is akin to transferring one’s work to another
unfamiliar territory with no guarantee of retaining their benefits. Hence the reaction of
the present staff could largely be defensive and that is why they would prefer
outsourcing to be done on the non-core areas. There have been significant changes
facing the technical services of libraries which are challenging librarians to develop
new policies, apply new technologies, develop new competencies and to take risks for
making improvements.
5.2.3 Challenges Facing Outsourcing Practices
The third objective of this study was to establish challenges facing the UoN library
system in relation to outsourcing practices. The study found out that the library only
initiates outsourcing decisions but the outcome is determined at the highest levels of
University administration. In most cases, the decision may not augur well for the
library. The other challenge revealed in the study was that there is no outsourcing
policy for the UoN library system. The staff confuse the acquisitions policy for the
outsourcing policy.
5.2.4 Solutions to the Challenges Facing Outsourcing Practices
To resolve the challenges established by the study, there is need for a paradigm shift
in the way decisions relating to outsourcing are made. Library acquisition and
processing is not simply the usual procurement process. Outsourcing requires more
involvement of the people affected and therefore those decisions need their input. If
41
outsourcing is to be effective and successful, an outsourcing policy is necessary to
guide the process.
5.3 Conclusion
Based on the findings and discussions presented in the preceding sections, this study
drew the following conclusions:
Outsourcing increases the performance of organizations since it reduces costs,
increases access to new technology and new expertise, leads to core
competence concentration and speeds up delivery. It is time librarians realized
that their role of being gatekeepers of knowledge is diminishing and now they
are becoming more of facilitators and enablers. Libraries are no longer the
only source of information but serve as only one of the sources of information
so customers have increasingly high expectations from them. The value of
libraries within organizations is no longer assured in the face of new
technologies. There are other destabilizing factors brought about by
digitization, globalization and internet. Libraries therefore should not be tied
down to the old ways of doing things but need to be at the forefront of
innovating ways to counterattack the emerging, aggressive and innovative
sectors.
Outsourcing also opens up new avenues to entrepreneurship among the new
generation of library professionals. With the ever shrinking job market, new
graduates would find a niche for their skills in outsourcing. It may be a good
career alternative to a traditional full time librarian job, now that funding of
universities and their libraries by the government is dwindling. In any case
42
technology is changing the role of libraries and librarians. On that note,
perhaps outsourcing would also motivate the vendors to develop specialized
knowledge related to the particular stage of the production process they are
dealing with because their contractual power is protected.
In the face of new technologies and the ever expanding outsourcing of
activities, library and information professionals will soon find themselves in
the position of negotiators and bargainers dealing with buying services or
resources from vendors. It is time therefore these professionals learnt other
new skills such as contract management, project management, public
speaking, presentation and negotiation. Acquisition of collections need to be
just in time in the sense that resources need to be acquired and made available
within the shortest time possible. This also means that more emphasis should
be placed on collection support and user services. Librarians need to be visible
and proactive rather than staying in the backroom. The library of the future is
a centre of excellence marked by high quality of services, productivity and
innovation.
Knowledge management is an important element in the outsourcing
relationship since both parties must share their knowledge to jointly create and
exploit their potentials. Special focus must be put on tacit knowledge since
explicit knowledge is easier to share. To do this will require making it clear to
the partner what can be done by investing enough time for internalization of
tacit knowledge, appreciating emotional commitment and deepening personal
43
involvement, establishing effective communication, cultivating a common
culture and personal contacts, and establishing an appropriate rewards system.
To a greater extent, outsourcing is relevant to the UoN library system,
however it should be handled cautiously and clear methodologies need to be
employed in order to realize its full usefulness. The experience of those who
have outsourced services seems generally positive.
5.4 Recommendations
In the light of the findings, discussions and conclusions, the following
recommendations are hereby made;
5.4.1 Need for Outsourcing
The UoN library system should outsource some of the technical services so as to bring
in great competitiveness. Outsourcing will give the staff more time to concentrate on
core competencies and therefore perform better and give quality services. The
considerable professional resources of the library’s technical staff could be redirected
to the development of new services which support research such as research impact
assessment and bibliometrics. The resources could also be redirected to placing more
effort in communicating with academic staff and customer service.
5.4.2 Strategic Partnering
The UoN library system should strategically assess its partners with a view of not
only reaping the fruits of cost reduction but also benefiting from cutting-edge
technology available elsewhere. For instance, when acquiring print resources, the
44
university should source from vendors who also offer the initial bibliographic record
of the resources. This will cut time taken to create records when the resources are
received.
5.4.3 Outsourcing Policy
The UoN library system needs to have an outsourcing policy in place so that service
providers are clear on expectations and goals of the university. The policy will also
give birth to guidelines which will acknowledge whether providers will be able to
respond reasonably to expectations and frequent changes in business and technology
requirements to ensure continuity in service provision. At present, the acquisition
policy is confused with the outsourcing policy.
5.4.4 Acquisitions in the New Dispensation
There have been significant changes facing the technical services of libraries which
are challenging librarians to develop new policies, apply new technologies, develop
new competencies and to take risks for making improvements.The UoN library
system needs to redefine acquisitions in the light of new technologies. Acquisitions
has evolved far beyond purchasing, subscribing and licensing to include issues of
rights management. Another form of acquisition would be that of awareness of
resources by simply creating links from the library portal to sources on the internet.
Technological evolution is not about to stop, so this calls for a whole expanded set of
competencies to swiftly respond to the vast changes in the bibliographic and
information universe.
45
5.5 Suggestions for Further Research
This study explored the outsourcing options for the UoN library system’s technical
information processing services. This being a case study may not be the ideal base on
which to give recommendations to other university systems. A case study is restrictive
and the recommendations only apply to the entity under study. Future researchers are
hereby called upon to explore the following areas;
5.5.1 Use of Social Media and other new Platforms
Information sources and resources are moving to the digital realm and by so doing
enabling the emergence and growth of a significant group of specialist service
providers and vendors who should be of interest to future researchers. They should
investigate the possibility of integrating tools such as Facebook, Twitter, blogs and
mobile apps into library services. Social media is now the new way of interacting with
users in real time.
5.5.2 Investigate other Behavioral Aspects
Finding out the impact of other behavioral aspects such as commitment on service
delivery on the part of library and information service vendors and providers. This
would require investigating outsourcing through management of tacit knowledge.
5.5.3 Development of Central Acquisitions and Processing System in Kenya
Future researchers are called upon to explore the possibilities of all academic libraries
in Kenya of having centralized acquisition and processing system in place or
outsource one for that matter. This will bring about efficiency in processing and
perhaps lower the costs of acquisitions because of economies of scale.
46
5.6 Chapter Summary
The study has revealed that appropriate approaches and methods must be used in
outsourcing in order to ensure its success. Traditional approaches may not be
adequate. Organizations have to move away from the traditional “doing” kind of style
to actively outsourcing whereby new structures of managing and assessing
collaborative relationships have to be in place. It is prudent for UoN library system to
think about outsourcing strategically, understand the situation in which it operates and
take a considered approach of the future. As Winston Churchill once said: ”The
pessimist sees difficulty in every opportunity. The optimist sees the opportunity in
every difficulty.”
47
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APPENDIX 1
INTRODUCTION LETTER
52
APPENDIX 2
QUESTIONNAIRE FOR DATA COLLECTION
INSTRUCTIONS
Please indicate your response by ticking the provided boxes. For questions that
require suggestions or comments, please use the provided space.
Background Information
1. Kindly indicate your position in the organization
a) Senior management
b) Branch librarian
c) Supervisor
d) Staff
e) Any other (please specify) ___________________
2. Working experience in the technical processing of information
a) Less than 5 yrs
b) 5-10 yrs
c) 11-15 yrs
d) More than15 yrs
Outsourcing practices
3. What is your level of awareness about the concept of outsourcing?
a) Very high
b) High
c) Medium
d) Low
e) Very low
f) Never heard of it
4. Are you aware of the existence of a policy document guiding outsourcing activities
for the library system?
a) Yes
b) No
53
5. If the library is willing to outsource one or more functions, what do you think are
the reasons for doing so? Please tick in the appropriate column to signify the
importance level you attach to each item using the following rating scale: 1= Very
Important ; 2= Important; 3= Less Important; 4= Unimportant; 5= Very
Unimportant
NO. JUSTIFICATION FOR MAKING THE DECISION 1 2 2 3 4 5
1. Cost savings
2. Allow more focus on core business
3. Improve service level
4. Control budget
5. Lack of internal expertise
6. Acquire innovative ideas
7. Free up human resources for other tasks
8. Increase flexibility to meet changing environment
9. Save time
10. To enhance standardization
11. To enhance users’ satisfaction
Any other comment ____________________________________________________
6. If the library is NOT willing to outsource one or more functions, what do you think
are the reasons for doing so? Please tick in the appropriate column to signify the
importance level you attach to each item using the following rating scale: 1= Very
Important; 2= Important; 3= Less Important; 4= Unimportant; 5= Very Unimportant
NO. JUSTIFICATION FOR MAKING THE DECISION 1 2 2 3 4 5
1. No significant cost savings
2. Possible loss of confidentiality
3. Loss of control
4. Quality problems (in-house provides better quality)
5. Organization policy/tradition not to outsource
54
6. Slow response time (slow turnaround time)
7. Sufficient in-house staff
8. Highly skilled in-house staff
Any other comment ____________________________________________________
7. In your opinion, which activities and services can or may be outsourced so as to get
better results?
_____________________________________________________________________
_____________________________________________________________________
FOR SUPERVISORY AND MANAGEMENT STAFF
8. Statements in this table are meant to find out the method(s) which you use to
perform the following services and activities. Please tick the method which applies.
NO. ACTIVITIES AND
SERVICES
IN-HOUSE ON CONTRACT/OUTSOURCED
FULLY PARTIALLY PROPOSED
1. Digitization
2. Assigning subject headings
3. Serial subscription
4. Electronic document supply
5. Cataloguing
6 Physical processing
7. Authority control
8. Collection development/
Acquisitions
9. Indexing/Abstracting
services
10. Photocopying
11. Binding
12. Labelling
13. Printing
14. Any other
55
9. Explain the factors you take into consideration before outsourcing.
_____________________________________________________________________
10. How are decisions to outsource made and at what level in the university?
_____________________________________________________________________
_____________________________________________________________________
11. How is the vendor for your outsourcing activities and services selected?
a) Request for proposal followed by a bid process
b) On the basis of vendor reputation
c) Contracted to the parent organization
d) Consulted with other institution(s) about their vendors
e) Any other ________________________________
12. What is the staff’s reaction towards outsourcing of the library’s activities? (Select
all that apply)
a) Fear of job loss
b) Staff more casual towards responsibilities
c) Fear to lose identity
d) More active and alert in their responsibilities
e) Reduction in workload of staff
f) Want more activities to be outsourced
g) Increased staff morale
h) Want outsourcing to be discontinued
i) Improvement in their skills
j) Supportive to outsourcing
k) Improved their professional competency
l) Any other……………..
13. How do you evaluate the success of outsourcing?
_____________________________________________________________________
_____________________________________________________________________
56
14. Has outsourcing provided the desired results?
a) Excellent
b) Good
c) Satisfactory
d) Fair
e) Not satisfactory
15. Outsourcing has not provided desired results because:
a) Planning was insufficient
b) The quality of products and services reduced
c) Did not save the expected money
d) Vendor failed to deliver services as promised
e) Any other ___________________________________
16. Do you provide outsourced services to others outside the library system? In either
case, briefly explain ____________________________________________________
17. Briefly give any other comments regarding outsourcing of library activities and
services
_____________________________________________________________________
_____________________________________________________________________
____________________________________________________________________